Globalization is an integration of the economically poor countries into an open completion global free trade of the imports and exports to fit the world economy. Inequality and poverty can be two things, which are greatly different but both complement each other and have a great impact on the economic status of a country and the world at large. Inequality can be viewed from the positions of income or wealth, health or education; all these are tied to the economic status of a country hence an outcome of poverty. Where there is poverty there are likely lack of health facilities and education and low standards of living. Therefore, the liberalization, the successful open world trade business and the intervention of the states are some of the conditions necessary to improve the world"s economy.
At the start of the twentieth century, most African nations encountered immense poverty. This occurred after the collapse of the Soviet Union. For most African countries, the 1990s proved harsh since their economies were facing a severe depreciation. On the other hand, the Latin America encountered a favorable economic doldrums. The American economy encountered prosperity since the early 1980s. To that effect, no damage occurred in its economy after the collapse of the Soviet Union. This situation brings forth another reason for the unequal global economy. This is according to Chapter 5.
Over the centuries, deductions provided that as the wealthy made more wealth for themselves, the poor continued to languish in extreme poverty. However, with the recent efforts to promote global economic equality, most of the poor people are gradually becoming richer. The UN set goals that would favor the economies of different nations. The organization termed these goals as the "Millennium Development Goals". These goals were pointed out from the onset of the new millennium. One of the main goals and ambitions of this organization included reducing the number of poor individuals to almost or more than half. The team argued that by providing minimum resources to each individual, survival would be met. The UN, in conjunction with the National Bank, joined to work on the problem at hand. Statistics stated that by 2004, the overall number of poor people globally had gone below 1 billion. This appeared different from the former 1.25 billion poverty-stricken individuals. Hence, globalization made tremendous efforts to promote global equality (Potter, 2008, p. 16).
Despite the immense efforts that the UN and the World Bank made, most people in the developing world languish in extreme poverty due to several causes. A larger portion of the world population encounters social seclusion. Most poverty-stricken countries lack connections with the developed countries. Moreover, in industrialized countries, the poor majority indulge only in low-wage jobs where they work for long hours. In addition, the immense differences in the income create a clear boundary between the wealthy and the poor people. Furthermore, most underdeveloped countries face a major problem in creating enough job opportunities for their citizens. On the contrary, developed countries possess the ability to provide two-thirds of their population with adequate job opportunities (Giddens, 2009, p. 46).
The living standards of people all around the globe largely differ. For instance, when comparing the standards of living in Malawi and America, one notices the diversity in the two countries. The global inequality becomes obvious in such a comparison. For example, as the Malawians encounter extreme poverty levels, the Americans face a remarkable growth in the general economic state. In addition, technological advancements provide better living standards for the Americans, contrary to the Malawians. Despite the fact that Malawi as a nation tried to rescue itself from economic disability, disasters like bad weather hindered these processes. This large economic gap was inevitable since these countries attained liberty at different times. Thus, this brought about power inequality around the globe. Therefore, some countries remained to be the superpowers while others are still in the status of developing countries.
In order to find out the contribution of globalization in promoting global equality, it occurs fundamentally to note both pros and cons of globalization. Several analysts explained that globalization provides a unique way of bring equality around the globe. Particularly, they argue that it helps in forming vast connections within the world. For instance, the transport systems, as well as the communication networks, grew tremendously over the past four decades. The evolution in technology largely contributed to the advancement of the communication network. This occurred since better communication devices such as the Internet were established. Although such technological advancements occurred in most developed nations, they still helped in reducing the distance between millions of miles (Giddens, 2009, p. 76).
In addition, all the above enhanced the correlation between different nations. Thus, businesses around the world prospered due to this. The globe has encountered what can be termed as "global shrinking". Thus, it is now referred to as the "global village". The economic development around the world led to an immense reduction in distances around the globe. In addition, the transport and communication networks have been largely improved in their operations. This has promoted the interconnectivity among different developing and developed countries. Thus, the economies in these countries improved.
Since the 1990s, the improved airline networks proved its fundamental promotion of the global prosperity. The predominance of three major cities, New York, Tokyo and London in the air freight sphere still contributed to a global economic growth. This occurred since the three mentioned countries include dominant hubs. More secondary hubs such as Miami, Singapore and Sydney also possess a remarkable concentration of the international airlines. Hence, globalization has led to a stronger local concentration within the globe.
Socioeconomic distinctions still exist between different countries of the world. The third world countries experienced many difficulties in trying to achieve full development. One of the main reasons for this included decolonization. In the post-colonial era, it took the countries like Malawi a longer time to gain both social and economic stability. Moreover, these nations portrayed less aggressiveness in attempts to achieve economic stability. To that effect, they remained underdeveloped as the developed countries increased rapidly in economic growth.
According to Chapter 4 of Globalization, Development and Underdevelopment, the use of internet across the globe grew largely. However, this occurred mainly in countries such as America, Venezuela and Tobago. The use of these services in developing nations occurs negligibly. Such situation acts as one of the sources of global inequality. Most developing nations still lack sufficient provision of devices such as computers. Thus, the possibility to connect through the internet is minimal in these countries.
The level of economic development of any nation across the globe is largely affected by its GDP and GNI. GDP stands for the gross domestic product. It refers to the output within the country. On the other hand, GNI stands for the gross national income. These two factors determine the amount of wealth a particular nation has. Moreover, the global economic inequality is largely influenced by both these factors.
After the collapse of the Soviet Union in late twentieth century, most of the African countries encountered enormous economic loses. On the other hand, multi-power nations experience relative financial growth. This is another crucial proof of the immense differences in the economies of various nations (Potter, 2008, p. 56).
Korea provides a good example of a nation that established its financial stability in spite of a poor state. Initially, Korea was termed as one of the poorest countries in the world. This country managed to establish a perfect foundation for growth in the pre-colonial era. It encountered a rapid population growth immediately after the colonial era. In addition, it invested in its population by providing an adequate education. This provided the country with a literate population that could handle the electronic-based enterprises. Korea dealt mainly with the electronics, ships and cars. These items earned a large demand in the world market. The life expectancy in the nation also increased. These businesses succeeded since Korea used Korean expatriates in their industrial activities. Due to this, much of the revenue ploughed back into the country. The country developed immensely after independence since it possessed the required expertise. Moreover, the country provided war materials during the Cold War in America. This increased the country"s popularity (Lechner, 2009, p. 63).
Although Korea has been known as one of the poorest countries in the world, it now stands out as one of the wealthiest nations. The economic stability was further emphasized by the political and social freedom that the country earned after the independence. Other underdeveloped countries lacked this opportunity since even after independence there remained the elements of the colonial rule.
In conclusion, the current world occurs more globalized than before. Most multinationals dominate the production and consumption patterns. However, there are different cultural perspectives around the globe that create a global divide in certain regions of the world. For instance, when McDonald"s restaurant was established in Barbados, it faced numerous detest since the Bajans prefer chicken to red meat. Although McDonald"s is one of the prominent tourist destinations for Europe and North America, it faced closure within six months of its opening. Thus, different cultures within the globe lead to diversified global culture (Lechner, 2009, p. 123).
In the attempts to enhance global economic equality, the economic liberals and organizations such as the World Bank developed policies based on the short-term harsh impact on the economy of a country. Consequently, they have established financial contributions that ensure adjustments and development of the developing countries" economies.
In those countries, different restrictions that inhibit carrying out business are lifted. All this gives certain benefits even to the rich companies since easing of quotas and better access to the markets promote investments in the poor countries.